PREVENTION OF FRAUDULENT VILLAGE FUNDS IN MEDIATING THE INFLUENCE OF HUMAN CAPITAL, AND DEVELOPMENT PLANNING ON COMMUNITY WELFARE

Abstract

Prevention of Fraudulent Use of Village Funds in the Mediation of the Influence of Human Capital and Development Planning on Community Welfare. This study explores the mediating role of Fraud Prevention, Human Resource Quality, and Village Financial Planning in relation to Community Welfare. The method used involves a mediation test with bootstrapping techniques to assess the mediating effect of Fraud Prevention in two channels: (1) the influence of Human Resource Quality on Community Welfare and (2) the influence of Village Financial Planning on Community Welfare, mediated by Fraud Prevention. The research was conducted in South Aceh, with a population of 260 villages and a sample of 120 respondents. The data analysis was performed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The findings show that improving the quality of human resources positively impacts community welfare and fraud prevention. However, further analysis reveals that fraud prevention does not play a significant mediating role in the relationship between human resource quality and community welfare. In contrast, fraud prevention significantly mediates the relationship between village financial planning and community welfare. These results emphasize the importance of fraud prevention in enhancing the positive impact of village financial planning on community welfare. This study suggests that greater attention should be given to preventing fraud in village financial planning and investing in the development of human resources to improve community welfare. The findings are expected to provide valuable insights for improving policies and practices in village financial management.